Analyst Sees Opportunity In Battered Media Stocks

Media stocks have been hit hard by selling pressure in the past year, but Deutsche Bank analyst Bryan Kraft sees the dip as a buying opportunity for selective media investors.

In a new report, Kraft adjusts Deutsche Bank’s price targets on several top media stocks and reveals which names are the firm’s top picks for investors, reports benzinga.com.

“We believe the underperformance of media stocks over the past year combined with fundamentals that are more stable now than most thought they would be 6 months ago have created a selective buying opportunity in media stocks,” Kraft explained. He notes that valuations of several top names are currently at multi-year lows.

National TV ad revenue growth was flat in 2015, and Deutsche Bank is projecting it to be slightly positive in 2016 before dipping modestly into negative territory in 2017.